The Central Bank of Nigeria (CBN) has mandated all CBN Directs BDCs to Reapply for in the country to reapply for new operational licences by June 3, 2024, to continue their operations in the foreign exchange market.
This directive comes with new capital requirements: N2 billion for tier 1 operators and N500 million for tier 2 operators.
These requirements were outlined in the revised Regulatory and Supervisory Guidelines for Bureau de Change Operations in Nigeria, announced earlier in February this year. The new guidelines aim to reform and reposition the BDC sub-sector to better serve its role in Nigeria’s forex market.
A circular issued on Wednesday, signed by CBN Director of Financial Policy and Regulation Department, Haruna Mustafa, detailed the latest directives.
According to the circular, the guidelines introduce new licensing requirements and categories for BDCs, revise permissible activities, financial requirements, corporate governance standards, and provisions for anti-money laundering (AML), combating the financing of terrorism (CFT), and combating the proliferation financing (CPF).
The circular states, “All existing BDCs shall re-apply for a new license according to any of the Tiers or license category of their choice as provided in the Guidelines. Meet the minimum capital requirements for the license category applied for within six months from the effective date of the Guidelines.”
Additionally, applicants for new BDC licences must meet the conditions stipulated for the chosen tier or category.
BDC operators are also required to submit the promoter’s name, the proposed BDC name, the promoter’s email address, and the promoter’s phone number.
